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Name |
Hungary Energy Efficiency Co-Financing Scheme/PHARE Revolving Fund |
Status |
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Active |
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Funding Mechanism |
Loan fund |
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Duration |
1998-2008 |
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Objectives |
To offer loans at lower than commercial rate of interest to energy users in order to promote investments in energy and energy savings |
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Sponsors |
EU, Ministry of Economic Affairs, and the national bank |
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Eligible Sectors |
Municipalities and business entities |
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Eligible Projects/Technologies |
Lighting, combined heat and power generation, technological/production processes, rational heat supply, and building envelope upgrade. |
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Fund Endowment |
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Terms |
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-Funding Instruments |
Loans |
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-Interest Rates |
The interest rate is defined by the mixing of the PHARE and other sources. Assuming that an investment has an own resource of 50%, applies for PHARE funding of 25% and the other 25% from EBRD and EIB, the interest rate is almost the half of the general commercial rate. At least 10% own contribution is necessary and the PHARE contribution must be less than 35% of the total investment. |
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-Payback |
8 years |
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-Size |
Loan must not exceed HUF 30 million/US$ 107,000 with minimum own contribution of 10% |
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-Collateral |
. |
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-Share of loan in project cost |
Up to 90% |
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-Loan criteria |
Non-EEFS contribution for covering the project cost must be at least 10%. |
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Comments |
The PHARE grant provides the interest subsidy of the loans for it is lent to borrowers interest free. At the same, the PHARE component of individual loans may not exceed 25% of the total eligible project cost. The PHARE component of any loan must be between 20,000 and 400,000 EUR. |
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Sources |
Energy Centre
IEA |
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Contact Information |
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